Accounting Considerations for Media Businesses

ACCOUNTING FOR MEDIA & COMMUNICATION COMPANIES – EFFECTIVE PROJECT, COST, AND CASH FLOW CONTROL

Media and communication companies operate based on contracts, campaigns, and long-term projects, characterized by large revenues, complex cost structures, and cash flows that heavily depend on project acceptance and milestones. Without an accounting system tailored to the media industry, businesses are highly exposed to profit distortions between periods, incomplete cost recognition, prolonged receivables, and tax risks.

FAMA Consulting provides accounting services and accounting system setup for media and communication companies, helping management teams closely control each project, ensure financial transparency, and improve overall business performance.

 

ACCOUNTING AND FINANCIAL CHARACTERISTICS OF MEDIA & COMMUNICATION COMPANIES

1. Large contract revenues spanning multiple periods

Media contracts typically:

• Have high contract values
• Are executed in stages according to campaign phases
• Are accepted and recognized over multiple accounting periods

Therefore, companies must accurately track revenue and cost of sales by stage to ensure profits are properly reflected in each accounting period.

2. Complex service costs due to multi-project staffing

Labor costs represent a significant portion of total costs and often involve:

• One employee working on multiple projects simultaneously
• Direct and indirect costs that are difficult to allocate

Without appropriate cost accumulation and allocation methods, it is challenging to accurately calculate project costs and evaluate the effectiveness of each campaign.

3. Long project durations requiring tight cost control

Media projects often span several months and require:

• Cost tracking by project and by campaign
• Budget control to ensure projects achieve expected profitability

4. High off-book or undocumented costs – tax finalization risks

Due to industry characteristics, media companies often incur:

• Significant off-book or inadequately documented expenses
• High accounting profits but insufficient tax-deductible expenses

This creates substantial risks during tax inspections and audits if no proper solutions are applied.

5. Prolonged receivables – working capital shortages

Media project acceptance procedures are often complex, resulting in:

• Extended accounts receivable periods
• Working capital shortages that limit the ability to launch new projects

👉 Therefore, building an accounting system tailored to media and communication companies is the key to managing service quality, maintaining competitive pricing, and operating in full legal compliance.

 

BENEFITS & RESULTS OF USING ACCOUNTING SYSTEM SETUP SERVICES FOR MEDIA & COMMUNICATION COMPANIES

When using accounting services and accounting system setup for media companies at FAMA Consulting, businesses will receive:

✔️ Accurate project costing

• Application of the most appropriate service costing methods
• Enables the Board of Directors (BOD) to clearly understand project costs and avoid mispricing

✔️ Profits and losses reflecting economic substance

• Application of the accrual basis and revenue–cost allocation techniques
• Ensures business results accurately reflect project execution progress

✔️ Legally compliant payroll advisory

• Development of payroll and labor cost allocation methods compliant with labor laws
• Minimizes risks related to tax, social insurance, and labor disputes

✔️ A structured accounting system for cost control

• Design of detailed charts of accounts, master data, and project-based reporting structures
• A solid foundation for preparing financial statements in compliance with Vietnam Accounting Standards
• At the same time, supports management accounting reports for cost and revenue control

✔️ Project-based cash flow and receivables control

• Reports to monitor cash flow and accounts receivable/payable by contract
• Enables cash flow forecasting and balancing to ensure business continuity

✔️ Clear accounting processes – reduced reliance on individuals

• Establishment of standardized accounting procedures tailored to media companies
• Ensures smooth system operations and reduces dependency on individual staff

✔️ Accounting software & tax advisory solutions

• Advice on accounting software suitable for media and agency business models
• Delivery of accurate, timely accounting and tax solutions compliant with current regulations
• Minimizes tax and financial risks

 

FAMA CONSULTING – A SPECIALIZED ACCOUNTING PARTNER FOR MEDIA & COMMUNICATION COMPANIES

With extensive experience providing accounting services for media companies, marketing agencies, advertising firms, and digital marketing businesses, FAMA Consulting goes beyond traditional accounting to help companies build transparent, efficient, and sustainable financial and accounting management systems.

👉 FAMA Consulting – Specialized accounting solutions for media and communication companies, enabling effective control of costs, cash flow, and profitability on a project-by-project basis.